A Worthwhile Lesson That Will Take About Fifteen Minutes
 

Here's a link to a video prepared by a fellow named Porter Stansberry. Stansberry owns and operates an investment advisory firm. Be forewarned that at the very end of this video is a pitch for his newsletter. But that doesn't alter the value of listening and watching this video for fifteen minutes or so. I'd strongly recommend that you do so.

Stansberry warns that his allegations are controversial, and they are. He also notes that his conclusions are based on research and attempts to refute them have been unsuccessful. I've thought about what he says and I too have had a tough time totally refuting his predictions. But I can't come up with a serious argument why what he has observed and what he concludes in incorrect.

The underlying monetary mechanism that he describes and which he alleges is a critical threat to the U.S. economy and very way of life is real and something that we should all understand. One doesn't have to "buy in" to Stansberry's predictions, but there is real value to understanding his research and why he has reached the conclusions that he has.

While this is a "political" forum, other than one sentence in Stansberry's presentation his isn't a political argument. The kinds of things that Stansberry predicts will happen have occurred as the result of actions of our political leaders from both parties. More importantly, they will have to be solved by our political leaders, regardless of their party or idealogical leanings.

Basically, Stansberry isn't proposing ways for our government to begin to solve the threat he describes. He seemingly has given up on the ability of our government to address the problem. His presentation and the pitch for a newsletter at the end seems to be what individuals can do to protect themselves from the inevitable.

This IS a worthwhile listen and read. It'll take fifteen minutes or so. But you'll be better informed about the financial crisis when you're finished. Then begin to think and draw your own conclusions.

Here's the link...

http://www.stansberryresearch.com/pr...VD/PPSILC24/PR

14 trillion dollar current debt with a annual deficit of 1.5 trillion. That is currently $45000 owed by each and every person in the US, growing an additional $4000 every year. Add to that the hundred trillion of unfunded promises the government has made and we know it cannot ever be paid. If you reduce the deficit $100 billion per year until the budget is balanced, and then continue to reduce the debt $100 billion per year, it will take 258 years to break even.
That is why neither party seriously tries to address it.

VK.....I want to be careful in how I present my post as it is not meant to be confrontational and I think I respect your opinion,albeit even when I dont agree with it, that you will take this in the way it is intended and the questions that I feel obligated to ask...even if many of the things he says have an element of truth

First, I am always initially skeptical of folks who present "the sky is falling" kind of opinions but then end with a legal solution that they offer even presented as individual protection it still benefits the person making the claims

Secondly, this same man was involved with Pirate Capital who in August of 2010 and had to pay 1.5 million restitution for giving FALSE stock information.

Are you aware and can you comment on that.....when I listened I had to do some investigation and it sort of alarmed me when I read what I read.

http://www.sec.gov/litigation/complaints/comp18090.htm

I have read his response to the case and in fairness, this is the link to that...

http://dailyreckoning.com/why-the-se...u-should-care/

I guess I am just leery of this type of presentation....he knows what is happening....and if you give him a piece of the action, he will protect you.

He is a frequent guest on the shows of Alex Jones, considered to be a conspiracy theorist and sort of a right wing extremist !

Just Be Informed
 

I don't know what else to say. I'm certainly not endorsing this guy's conclusions. Far from it, in fact. While he describes the mechanics of what would happen if the dollar was replaced as the reserve currency, he's a little light on really how it could happen, or rather what might prevent it from happening.

I think there are two factors that would inhibit the displacement of the U.S. dollar as a reserve currency. First, what other currency would replace it? Currently there is none, and I think the idea of a basket of currencies is fraught with too many complications. Secondly, he seems to underestimate the power of political influence on such a change happening. The real danger lies with China surpassing the U.S. as an economic and military power. That might take awhile, but in time an argument could be made that the Chinese yuan is stronger, more stable, and maybe a better choice as a world reserve currency.

But once we better understand the mechanics of what Stansberry proposes might happen, it is a safe conclusion that so long as the U.S. continues to grow it's debt and becomes weaker economically, both our political influence and economic power to resist things such as Stansberry proposes is lessened.